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Nvidia agrees to acquire Hugging Face for $12.9B, pledges to keep platform open

Nvidia agrees to acquire Hugging Face for $12.9B, pledges to keep platform open

  • Nvidia agreed to acquire Hugging Face for $12.9B, making the open-source AI platform Nvidia's second-largest purchase after its $20B acquisition of Groq assets in December.
  • Hugging Face CEO Clément Delangue said the company approached Jensen Huang during the summer, seeking more resources, scale, and visibility for Hugging Face and open-source AI.
  • Huang wrote that Hugging Face will remain an open platform for the AI ecosystem, while Nvidia scales its platform and infrastructure for developers and institutions.
  • Delangue said Hugging Face used an Nvidia version of a Chinese open model to resolve its recent security incident, and argued the breach reinforced the case for open models.
  • Huang said open models give defenders an asymmetric advantage because more people can collaborate on protection than on attacks.

Hacker News opinions

I wonder whether Nvidia can now have Hugging Face sue OpenAI over the hack and use discovery to uncover useful information.

I doubt Nvidia would sue one of its largest customers. That would send a bad signal to every other customer.

I see why this is being reported again: last week's reports were not official, and Nvidia's blog post adds new details.

I find it striking that Hugging Face approached Jensen Huang first. Sometimes a strong company is sold because its founders start the conversation.

I am happy for the Hugging Face team. They spent years trying to find a business model, and this is a much cleaner outcome.

I do not understand why the AI equivalent of Maven Central is worth $12.9B. It looks like model hosting and metadata to me.

I think the value is network effects, much like GitHub. Hugging Face has the ecosystem, libraries, content, and established workflow around model distribution.

I think $12.9B underprices Hugging Face, but I also worry about Nvidia owning it. Nvidia has not historically been friendly to open source, so I would archive what I need now.

I think that view is outdated. Nvidia open-sources what helps it sell more chips, and keeping open-model delivery healthy should increase hardware demand.

I suspect Hugging Face faced a difficult revenue problem. Its workflow won broad adoption, but raising more money at ever-higher valuations without large GPU contracts would be hard.

I worry that Nvidia finances closed-model companies while buying a platform that benefits open models. I cannot tell whether this is hedging or an embrace-and-extinguish strategy.

I do not see a conflict. Nvidia is well positioned if open models win, and investing in competing companies is normal.

I dislike this acquisition loop as a consumer. OpenRouter and Hugging Face both sold to multibillion-dollar companies within weeks.

I do not think someone can clone Hugging Face by putting models on a VPS. Popular 30GB downloads require major bandwidth, storage, security, network peering, and infrastructure.

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